Mali should diversify its exports,
lower the charges levied on exports and extend its WTO commitments in order to take
advantage of multilateral trade liberalization and attract foreign investment.

A new report by the World Trade
Organization, the first one on Mali's trade policies and practices, underlines the major
liberalization efforts unilaterally carried out by Mali, particularly in the agricultural
and mining sectors. It notes, nevertheless, that taxes, special authorizations and
prohibitions are unlikely to encourage exports.

The WTO Secretariat's report and the
general policy statement submitted by the Government of Mali will be used as a basis for
the review of Mali's trade policies and practices, which will take place at the same time
as the review of Burkina Faso, on 18 and 20 November 1998.

The WTO report states that, since
1988, the Government of Mali, with the support of the International Monetary Fund and the
World Bank, has carried out a number of reforms to open up the economy and strengthen the
role of the private sector. As part of these reforms, the Government has privatized public
enterprises, lightened the tax burden, dismantled non-tariff barriers and significantly
simplified the structure of import duties and taxes. In order to boost exports, Mali has
eliminated export duties and taxes on a large number of products, introduced a value-added
tax (VAT) and established free zones.

The major exports are cotton (50 per
cent of its merchandise export earnings), of which it is the biggest producer in
sub-Saharan Africa, gold (17 per cent) and livestock products. The report indicates that
there is a chronic deficit in Mali's trade balance, and exports only cover about half of
imports. This is a contributory factor in the structural deficit of the current account,
sustained by the negative balance in services caused by large outgoings for insurance and
interest on the debt, which

increased as a result of the
devaluation of the franc of the Communauté financière africaine (African Financial
Community).

Mali levies several duties and taxes
on imports, including a customs duty of 0 or 5 per cent, a fiscal import duty of 0, 10 or
25 per cent, a service provision contribution of 3 per cent on petroleum products and 5
per cent on other products, a short-term import tax of 55 per cent on sugar. The simple
arithmetic average of these duties is 22.1 per cent, with a minimum of 3 per cent and a 35
per cent maximum, rising to 75 per cent on sugar. Import duty rates are not highly
dispersed and show a generally negative escalation from unprocessed products to
semi-finished goods. In addition to import duties and taxes, value added tax at two rates
(10 per cent and 15 per cent) has been in force since 1991.

Mali's main trading partners are
Côte d'Ivoire, the European Union and Senegal. More than half of its export earnings
derive from developing countries, in particular those of the West African subregion.
Switzerland is a major outlet for Malian cotton.

Mali is a founder member of the West
African Economic and Monetary Union (WAEMU). The aim of this organization is to create an
economic union by bringing about the convergence of economic policies and the
harmonization of fiscal legislation. Monetary integration, with a central bank and a
common currency, has already been achieved. The next stage is the creation of a customs
union with a Common External Tariff (CET) with four rates (1 per cent, 6 per cent,
11 per cent and 21 per cent). Implementation of the CET, which should lessen the
number of duties levied began in July 1998 and should be completed in January 2000. Mali
is also a member of the Economic Community of West African States (ECOWAS) whose treaty
also provides for the creation of a customs union.

Under the Lomé Convention and the
generalized system of preferences, Mali enjoys the preferential treatment granted to
developing countries. The report notes, however, that the scope of this non-reciprocal
preferential treatment is limited owing to the small number of products exported by Mali,
namely raw materials that are generally subject to zero or very low MFN
(most-favoured-nation) import duties in the importing countries.

Agriculture accounts for about 48
per cent of Mali's real GDP and 80 per cent of employment of the active population. Though
Mali has undertaken substantial liberalization reforms in this area, there is still State
participation in the cotton sector and State enterprises are also involved in the
production and marketing of livestock products and rice. There are several prohibitions
and special export authorizations, in particular for certain cattle, hides and skins.

The manufacturing sector remains
undeveloped in Mali and contributes only some 13 per cent of GDP. Mali has substantial
potential in the textile and agri-food industries, but the negative escalation of import
duties does not favour the development of this sector. The introduction of the CET should
reduce import duties on raw materials.

Dominated by informal trading, the
services sector accounts for about 40 per cent of GDP. Owing to the low level of
commitments at the multilateral level, Mali is not fully benefiting from the
liberalization efforts it has already made unilaterally. For the moment, Mali's limited
bindings do not guarantee investors, and in particular foreign investors, that the
liberalization reforms will be irreversible.

The report states that the mining
sector in Mali has been revived through the exploitation of gold deposits. The guarantees
and various advantages, including tax and customs advantages, offered by the 1991 Mining
Code have helped to revive mining in Mali. The State, however, reserves the

right to hold up to 20 per cent in
the capital of mining enterprises. Exports of precious substances in the unprocessed state
are prohibited, and sales of these substances in the processed state are subject to the 3
per cent service provision contribution. The report suggests that the provisions on State
holdings and the prohibition on unprocessed precious substances be reviewed because they
may discourage investment and foster the proliferation of informal activities.

Intellectual property rights are
protected in Mali by the Bangui Industrial Property Agreement signed by some 15 African
countries (the African Intellectual Property Organization (AIPO) was set up under this
Agreement) and a 1984 Copyright Law. Work is going on within the AIPO to bring the
provisions of the Bangui Agreement into conformity with the obligations of WTO Members
under the Agreement on Trade-Related Aspects of Intellectual Property Rights.
Counterfeiting in Mali primarily concerns medicinal products, audio tapes, sporting goods
and leading brands. There are few convictions for piracy and counterfeiting. Aware of the
increase in consumption of counterfeit medicines owing to the higher cost of imports
following the devaluation of the CFA franc, the Malian authorities have decided not to
levy import duties and taxes on essential medicines.

The report concludes that the
introduction of the CET could increase nominal tariff protection and effective rates of
protection in Mali. As fiscal concerns generally outweigh the protectionist intent in
Malian import duties, the complete elimination of export levies could be expected if the
CET brings in more substantial Government revenues. Apart from fiscal concerns, it is the
lack of information on the range and scope of the WTO Agreements, and on the contours of
Members' obligations, that explains the introduction of measures such as the service
provision contribution, which is not included in the list of other duties and charges
bound by Mali. Accordingly, assistance aimed at enhancing awareness of the contents of the
WTO Agreements could help to ensure Malian compliance.

Note to editors

The reports by the WTO
Secretariat and the Government of Mali, will be discussed by the WTO Trade Policy Review
Body (TPRB) on 18 and 20 November 1998. The WTO's TPRB conducts a collective
evaluation of the full range of trade policies and practices of each WTO Member at regular
periodic intervals and monitors the trends and developments that may have an impact on the
global trading system. The Secretariat's report covers all aspects of Mali's trade policy,
including domestic laws and regulations, the institutional framework, trade policies by
measure and by sector. Since the WTO came into force, the "new areas" of
services trade and trade-related aspects of intellectual property rights are also covered.

The summary observations in the
Secretariat's report and extracts from the Government's report are attached. The full text
of these reports are available from the WTO Secretariat on request (Telephone No. 41 22
739 5019). They are also available for journalists in the Newsroom of the WTO Website
(www.wto.org). Together with the report of the TPRB's discussion and the Chairman's
summing up, these two reports constitute the full review of Mali's trade policy, which
will be published in due course and will be available from the WTO Secretariat, Centre
William Rappard, 154 rue de Lausanne, 1211 Geneva 21.

Mali is a West African
least-developed country (LDC) which became independent on 22 September 1960. Upon
independence, Mali opted for a planned economy on the basis of five-year programmes drawn
up by the State. In order to underpin this option, State enterprises were set up in all
sectors. Mali left the franc zone and created the Malian franc in 1962.

The inherent limits of this
development strategy (in particular poor management of bloated, State-subsidized
government enterprises), compounded by Mali's "natural" economic difficulties as
a land-locked LDC, prompted a first set of reforms in 1982, at a time when the country was
accumulating internal and external payment arrears. Mali rejoined the West African
Monetary Union and hence the franc zone in 1984. Notwithstanding a significant financial
improvement, the adjustment effort was interrupted in 1987.

The first structural adjustment
programmes supported by the International Monetary Fund and World Bank were established in
1988. These programmes, aimed at opening up the economy and strengthening the role of the
private sector, included a sectoral adjustment programme for State-owned enterprises
(PASEP) and an agricultural sector adjustment programme (PASA). Two enhanced structural
adjustment facilities were arranged, the first for 1992-1996 and the second for 1996-99.
Implementation of these programmes was interrupted in January 1991 owing to
socio-political disturbances which led to the establishment of a democratic regime in
Mali, and between August 1993 and April 1994 owing to renewed socio-political
tension.

These various reforms led to a break
with the policy of State-planning of the economy. Public enterprises were wound up,
reorganized and/or privatized, the tax burden lightened, and the tax and customs services
were reorganized. The reforms also brought about the dismantling of non-tariff barriers to
trade on most products, the elimination of export duties and taxes on many products, and a
significant simplification of the structure of import duties and taxes. The devaluation in
1994 of the African Financial Community franc (CFA franc), as a result of which the parity
moved from CFAF 50 to 100 for one French franc, boosted domestic production of cotton
(exports of which increased sharply), cereals, and fruit and vegetables. The real GDP
growth rate (rising steadily since 1994), has generally been higher than that of
population growth, which is about 2 per cent. After peaking at 23.2 per cent in 1994
(due to the devaluation), inflation has been brought down to 7 per cent. Nevertheless, the
reforms have had generally little effect on the Government deficit (except in 1996-97) and
the balance of payments (except in 1997).

Agriculture accounts for about 48
per cent of Mali's real GDP and 80 per cent of employment of the active population. Mali
obtains about 50 per cent of its merchandise export earnings from cotton, of which it is
the biggest producer in sub-Saharan Africa. Gold mining was responsible for the revival of
mining activity: gold accounted for 17 per cent of merchandise export earnings
in 1996. The industrial manufacturing sector remains undeveloped and contributes only some
13 per cent of GDP. It is largely directed towards the domestic market and produces
essentially textile and food products. The services sector accounts for about
40 per cent of real GDP, predominantly accounted for by commercial services:
these attract the bulk of informal activities, which represented about 29 per cent of
Malian GDP in 1994.

Malian exports, consisting primarily
of cotton, livestock products and gold, are vulnerable to world price fluctuations and
climatic factors. Exports cover only about half of imports, leading to a chronic trade
deficit. With a chronic deficit in services trade owing to large outgoings for freight and
insurance services and debt servicing, compounded by the devaluation of the CFA franc, the
current account also has a structural deficit.

Mali's main trading partners are
Côte d'Ivoire, the European Union and Senegal. Mali derives more than half of its export
earnings from developing countries, in particular those of the West African subregion. The
action taken to create a customs union among West African countries which use the CFA
franc (the countries of the West African Economic and Monetary Union - WAEMU) and the
substitution effect on non-WAEMU imports induced by the devaluation of the CFA franc have
boosted trade with other countries of the Union, especially Côte d'Ivoire and Senegal.
Switzerland is also a major outlet for Malian products, especially cotton. From the
European Union, Mali imports capital goods, building materials and chemicals and
pharmaceuticals. Rice is imported from Asian countries and other food products from the
other countries of the West African subregion, which in turn import live animals and fish
from Mali.

Institutional framework

Under its 1992 Constitution,
Mali is a pluralist democracy. The President of the Republic (Head of State) is elected by
universal suffrage for a term of five years, renewable once only. The President appoints
the Prime Minister (Head of Government) and the other members of the Government on the
proposal of the Prime Minister. The single-chamber parliament (National Assembly) votes
the laws. The High Council of the Communities is responsible for studying and issuing a
reasoned opinion concerning all local and regional development policies. The Economic,
Social and Cultural Council makes proposals for reforms and must be consulted on all bills
or provisions.

Since 1988, Mali has carried out a
sweeping revision of its laws and regulations in order to back up the liberalization of
its economy. The Investment Code which came into force in March 1991 grants investors many
tax and customs advantages and guarantees commercial freedom and freedom to repatriate
capital for foreign investors. Nevertheless, for reasons of public utility, the State
reserves the right to limit foreign investment in certain sectors (defence and security).
Mali's mining legislation offers administrative, mining and real-estate guarantees, as
well as guarantees of non-expropriation and of transfer of mining-linked funds, including
transfers of staff savings, in addition to the tax and customs benefits. Within WAEMU, a
community investment code is planned for 1998. This would in principle lead to the
elimination of duty and tax exemptions on imports of capital goods, which are subject to
low rates under the WAEMU Common External Tariff (CET).

Mali became a WTO Member on
31 May 1995, after having applied the GATT since 1967. Mali grants
most-favoured-nation (MFN) treatment to all countries except Israel. Like other WTO
Members, Mali adopted the whole of the results of the Uruguay Round. It benefited, among
other things, from the preferential and differential treatment granted to LDCs, in
particular in the form of waivers or delayed application of certain provisions, and it
should profit above all from the strengthening of rules and disciplines in the
multilateral trading system and particularly in the sectors of importance to it, such as
agriculture, including livestock farming. Mali's main concern is to increase and diversify
production so as to take fuller advantage not only of existing opportunities but also of
those that should result from further multilateral liberalization. While recognizing the
need to continue to improve the quality of its products, Mali highlights technical
barriers to trade as one of the areas calling for special surveillance in the multilateral
trading system.

Mali is a founder member of the
West African Economic and Monetary Union (WAEMU). The aim of this organization is to
create an economic union by bringing about the convergence of macroeconomic and sectoral
policies and the harmonization of fiscal legislation of member countries; monetary
integration, with a common central bank (the Central Bank of West African States) and
currency (the African Financial Community Franc  CFAF), has already been achieved.
The structure of the Common External Tariff (CET) with four rates (1 per cent, 6 per cent,
11 per cent and 21 per cent, plus the Community levies totalling 1 per cent) has been
drawn up, and implementation was due to begin in July 1998 and end in January 2000,
by which date the customs union should have been completed. Mali is also a member of the
Economic Community of West African States (ECOWAS), whose Treaty also provides for the
creation of a customs union; the timetable for establishing this union has not been
respected.

As a signatory to the Fourth Lomé
Convention, Mali receives aid from the European Union and benefits from the Stabilization
System for Export Earnings (STABEX). However, Mali has received no compensation under
STABEX since 1992 as it has not suffered from lost export earnings (more specifically of
cotton exports). In addition, under the Convention, many Malian exports to the EU enjoy
non-reciprocal preferential treatment in the form of exemption from import duties.
Likewise, Malian goods enjoy non-reciprocal preferential access to the markets of
developed countries other than the European Union member States under the generalized
system of preferences. The scope of this non-reciprocal preferential treatment is limited,
especially owing to the small number of products exported by Mali, namely raw materials
that generally are subject to zero or very low MFN import duties in the importing
countries.

Mali has also signed several
bilateral agreements in the field of international trade. The Agreement signed with
Algeria in July 1996 provides for payment and credit facilities, and contains
provisions relating to the organization of or participation in trade fairs or exhibitions,
as well as to intellectual property rights. As at July 1998, Mali had not been involved in
any dispute settlement proceedings under the GATT, the WTO or under any other trade
agreement to which it is a party.

Trade policy features

Trade policy instruments and their
effects

Today, Mali's trade policy is
essentially based on duties and taxes. On the export side, the only levies in force are
the service provision contribution (CPS) of 3 per cent on the f.o.b. value of gold and the
tax of CFAF 7.5 per kg. of fish, which are also levied on domestic sales. Mali adopted the
Harmonized System Nomenclature in 1994. Several duties and taxes (entry duties) are levied
on imports. These import duties, the number of which will be reduced with the introduction
of the CET, consist of: a customs duty (DD) of zero or 5 per cent; a fiscal import duty
(DFI) of zero, 10 or 25 per cent; a service provision contribution (CPS) of 3 per cent on
petroleum products and 5 per cent on other products; a community solidarity levy (PCS) and
a community levy (PC) of 0.5 per cent each, levied on non-WAEMU and non-ECOWAS imports
respectively; and a short-term import tax (TCI) levied on sugar at a rate of 55 per cent
(which is reduced during the month of Lent and restored to the previous level following
this "sensitive" period). The simple arithmetic average of these duties
(excluding the PCS and the PC) is 22.1 per cent, with a minimum of 3 per cent and a
35 per cent maximum. This maximum rises exceptionally to 75 per cent on sugar as a
result of the TCI. Import duty rates are not highly dispersed and show a generally
negative escalation from unprocessed products to semi-finished goods. The least-taxed
goods are those of the chemical and pharmaceutical industries, non-electrical machinery
and petroleum. The most heavily taxed are fishery products, tobacco, clothing, leather
products, footwear, furniture (other than metal furniture), pottery and china.

In addition to import duties and
taxes, value-added tax at two rates (10 per cent and 15 per cent) has been in force since
1991. Exports are zero-rated for the purposes of reimbursement of the VAT levied on the
inputs and factors of production used in their manufacture. A service provision tax (TPS)
is also payable by all persons who provide services and have an annual turnover of more
than CFAF 1 million. The TPS also has a reduced rate of 7 per cent which is applied to
transport, entertainment, water supply and evacuation activities, and telephony. Other
services are subject to the normal 15 per cent rate. A special tax on certain
products (ISCP) is also levied on a number of goods. Import duties and taxes are charged
on the c.i.f. value, and excise duties on the c.i.f. value plus customs duties. However,
the amount of the ISCP is included in the VAT assessment basis.

Under the Uruguay Round, Mali bound
the customs duty rates applicable to agricultural products (like other WTO Member
countries) and those applicable to products coming under Chapters 44 (wood and wood
products), 81 (other base metals) and 92 (musical instruments) of the Harmonized System. A
60-per cent ceiling rate was granted for this purpose by Mali for all these products. The
other duties and charges on imports of these products were bound at 50 per cent. Thus the
bindings cover a relatively small number of products, and leave Mali a great deal of room
for manoeuvre in view of the large gap between the bound rates and rates actually applied.
In addition, the CPS is currently applied although it does not appear in the list of other
duties and charges bound by Mali. With the introduction of the CET, the WAEMU Commission
intends to renegotiate the tariff concessions of all member countries, including those on
the old lists for which bindings were made at a time when the countries were colonies.

The only prohibitions still in force
in Mali exist for reasons of security or health, or pursuant to international conventions
to which the country is a party. However, trade with Israel is banned. Imports of a c.i.f.
value exceeding CFAF 250,000 are subject to the certificate of intention to import issued
by the National Directorate of Economic Affairs (Ministry responsible for trade), under
the import verification programme set in place in 1989. In this connection, the National
Tax Directorate levies stamp duties and registration fees amounting to CFAF 3,000 per
tranche of CFAF 500,000 in c.i.f. value of imports; for the first tranche, these duties
are set at CFAF 6,000, i.e. CFAF 600 per sub-tranche of CFAF 50,000 of imports. In
addition, imports of an f.o.b. value exceeding CFAF 3 million are subject to
compulsory preshipment inspection by the General Inspection Company (SGS); the values
certified by the SGS are not binding on the customs administration, although it appears to
have used them in most cases. With the exception of provisions in trade agreements which
it has signed, Mali does not have laws on rules of origin, nor does it have domestic
legislation on anti-dumping, countervailing or safeguard measures.

The measures taken by Mali to boost
exports include the introduction of VAT, the elimination of duties and taxes on most
exports and the creation of free zones. Under the 1991 Investment Code, free enterprises
(which must export at least 80 per cent of their output) enjoy exemption from all fiscal,
parafiscal and customs duties and taxes. The Mali Mining Code also provides for exemption
from duties, charges and taxes on exports of mining products as well as on the related
turnover and proceeds of sales. However, exports of young male bovine animals, aged five
years or less and non-sterile breeding female bovine animals are prohibited, except where
specifically provided for under special agreements between Mali and other countries
wishing to constitute stock-raising centres. There is also an export prohibition on
precious substances (e.g. gold and diamonds) in the unprocessed state. Exports of hides
and skins are subject to special authorization. All other products are subject to the
certificate of intention to export (IE). Stamp duties are levied on the IE for gold
and cotton in accordance with the scale of charges applied to certificates of intention to
import.

Price freedom and freedom of
competition have existed in Mali since 1992. In special situations, however, such as times
of crisis, the Council of Ministers may regulate prices by decree. On the other hand,
implementation of the State enterprise adjustment programme (PASEP) launched in 1988 has
proved rather slow. At the end of 1997, a total of 20 State enterprises had been dissolved
or wound up, and 40 wholly or partially privatized. Other enterprises had merely been
reorganized.

Intellectual property rights are
protected in Mali by the Bangui Agreement on Industrial Property signed by some
15 African countries, under which the African Intellectual Property Organization
(AIPO) was set up, as well as by a 1984 Copyright Law. Work is in hand at AIPO to bring
the provisions of the Bangui Agreement into conformity with the obligations of WTO Members
under the Agreement on Trade-Related Aspects of Intellectual Property Rights.
Counterfeiting in Mali primarily concerns medicinal products, audio tapes, sporting goods
and leading brands. Piracy and counterfeiting give rise to infrequent convictions, which
are only of a token nature. Aware of the increase in consumption of counterfeit medicines,
owing to the higher cost of imports following the devaluation of the CFA franc, the Malian
authorities have decided not to levy import duties and taxes on essential medicines.

Policies by sector

Through the reforms undertaken
since 1988, Mali has substantially liberalized its economy and reduced State participation
in production activities. In the agricultural sector, most activities, including
production and marketing, have been liberalized for all products with the exception of
cotton and tobacco. Nevertheless, aside from these two subsectors, State enterprises are
directly involved in the production and/or marketing of livestock products and rice. The
agricultural sector has the highest tariff protection, followed by mining and quarrying,
and then manufacturing. The 55 per cent TCI makes sugar the most heavily protected
product in terms of import duties (75 per cent).

The various advantages, including
tax and customs advantages, offered by the 1991 Mining Code have helped to revive mining
in Mali, which is carried out both industrially and non-industrially; only gold,
phosphates and some building materials are exploited primarily on an industrial basis.
Under certain provisions of the Code, the State reserves the right to hold up to 20 per
cent (including a free holding of at least 10 per cent) in the capital of mining
enterprises. Mining resources are subject to an ad valorem tax of 3 per cent on
pit-head value. Exports of precious substances (e.g. gold) in the unprocessed state are
prohibited; sales of these substances (in the processed state) are subject to the 3 per
cent CPS. These measures, especially prohibition, have encouraged the proliferation of
informal activities, including non-industrial processing and sales of gold and gold
products. The multiplicity of categories of rights (currently seven), all accompanied by
establishment agreements, are among the most restrictive provisions of the Malian Mining
Code, narrowing the range of activities to which each category of right gives access, and
increasing costs, beginning with those of administrative procedures. A review of the
Mining Code is planned so as to make the sector more attractive to investors and promote
exports of processed products.

Mali has substantial potential in
the textile and agri-food industries, which have contributed to the signs of revival of
the manufacturing sector following the devaluation of the CFA franc. However, excluding
exemptions, the negative escalation of import duties does not favour the development of
the manufacturing sector; the introduction of the CET should reduce import duties on raw
materials. Furthermore, the high cost of energy, transport and telecommunications,
climatic difficulties jeopardizing regular supplies of agricultural inputs, the higher
cost of inputs (largely imported) following devaluation, problems of access to financing
and of obtaining land for industrial sites, and low purchasing power are among the factors
hindering the development of Mali's industrial sector.

Dominated by informal trading, the
services sector has been substantially liberalized. In branches such as tourism, buyers
have yet to be found for enterprises (including hotels). Telecommunications services
remain the main service activity in which the State is still heavily involved, through a
public enterprise, the Mali Telecommunication Company (SOTELMA): this explains the high
cost of these services in Mali (among the highest in the subregion). Owing to the low
level of its commitments at the multilateral level, Mali is not fully benefiting from the
liberalization efforts it has already made unilaterally. Mali's bindings remain limited to
modes of supply of adult education services in the handicraft sector, and hotel and
catering services, which does not guarantee investors, and in particular foreign
investors, that the existing situation will be irreversible.

Trade policies and trading
partners

Mali has unilaterally carried
out major liberalization efforts under the structural adjustment programmes being
implemented since 1988. The effects of these reforms are appreciable on the agricultural
and mining sectors but remain limited. In the mining sector, apart from the multiplicity
of categories of rights, it is primarily the provision relating to State participation in
the capital of companies which is worth reviewing as it can hardly promote investment. The
introduction of measures to promote exports of processed mining products (one of the
current objectives of trade policy) should be a clear feature of the code being drawn up,
as the present prohibition on unprocessed precious substances could foster smuggling
unless a suitable environment is created to encourage local processing. Again, the charges
levied directly or indirectly on exports of the main products and the special
authorization to which exports of hides and skins are subject are unlikely to encourage
exports.

The introduction of the CET could
increase nominal tariff protection and effective rates of protection by increasing the
(positive) escalation of import duties. As fiscal concerns generally outweigh the
protectionist intent in Malian import duties, the complete elimination of export levies
could be expected if the CET brings in more substantial government revenues. Apart from
fiscal concerns, it is the lack of information on the range and scope of the WTO
Agreements, and on the contours of Members' obligations, that explains the introduction of
measures such as the CPS, which is not included in the list of other duties and charges
bound by Mali. Accordingly, assistance aimed at enhancing awareness of the contents of the
WTO Agreements could help to ensure Malian compliance. This assistance, which would also
cover the provisions of the General Agreement on Trade in Services, could help to increase
Mali's participation in the world trading system and encourage the binding of certain
modes of supply of services it has already unilaterally liberalized. Commitments of this
kind will make the reforms more credible and encourage the flows of investment,
particularly foreign investment, which the country badly needs at present.

Under the integrated programme of
technical assistance for LDCs set in place by WTO and other organizations, Mali has also
requested assistance in various fields. These include the introduction of trade finance
and export promotion structures, the search for foreign trade and investment partners,
quality control, trade information collection and management, and rationalization of
customs procedures. Assistance in these fields will help to step up Mali's participation
in international trade and raise the standard of living of its people, and to dispel the
fears of marginalization currently being voiced in Mali.

The Republic of Mali is a
land-locked country in West Africa covering an area of 1,241,328 km2. It
became independent on 22 September 1960 and is a least-developed country.

A feature of the Malian economy is
the marked predominance of the primary sector, which accounted for 44.37 per cent of GDP
in 1996.

Following independence, the
Government adopted an interventionist economic policy, which has led to a number of
economic and financial imbalances.

From 1980 onwards, therefore, the
Government embarked upon a programme of economic reform in collaboration with its
development partners.

The main planks of the adjustment
programme are the liberalization of the economy, promotion of the private sector through
the withdrawal of the State, and the improvement of the economic environment and
legislative and regulatory framework.

The execution of the 1992-95
programme enabled significant economic and social progress to be made despite social and
political tension (demands by corporate bodies, disturbances in the northern part of the
country, etc.).

The macroeconomic objectives have by
and large been achieved: GDP grew by around 3 per cent a year during the period
1992-94 and 6 per cent in 1995; inflation, as measured by the GDP deflator, was limited to
2 per cent a year in 1992-3 and held down after the devaluation to 33.2 per cent in
1994 and 12.7 per cent in 1995, with 6.5 per cent in 1996. The overall budget deficit was
cut from 13.7 per cent to 10.5 per cent of GDP over the same period. Credit policy has
remained cautious. The January 1994 devaluation helped to boost exports, which increased
from CFAF 28.9 billion in 1993 to CFAF 157.2 billion in 1994, a rise of 82 per
cent.

Consolidation of this economic
performance has continued under the new economic and financial programme which covers the
period 1996-98. This programme has received the support of the IMF via an agreement under
the Enhanced Structural Adjustment Facility (ESAF) and of the World Bank in the form of an
Economic Management Support Loan (EMSL), as well as that of other bilateral and
multilateral funding agencies.

The reform strategy for the period
1997-99, in addition to attempting to balance the budget, places the development of human
resources and control of population growth at the heart of the Government's development
efforts and attaches particular importance to the structural reforms which are essential
in order to make the economy more flexible and diversify production and exports.

The various programmes have assigned
the role of engine of economic growth to trade and the private sector, through the effects
which they can have of stimulating and encouraging production and productivity.

The objective of Mali's trade policy
is to rehabilitate the domestic market, secure regular and adequate supplies of consumer
and capital goods, secure permanent markets for domestic products both at home and abroad,
diversify production and exports, increase exports at an average rate of 15 per cent
per annum over the next five years, and improve the operation of the commercial courts.

The reform programmes embarked upon
in Mali have led to gradual liberalization of the economy and less State participation in
production. Within this framework, public enterprises have been restructured, privatized
or wound up in accordance with the programme to reform public enterprises and the
agricultural sector has undergone sectoral adjustment.

Other sectors have been restructured
in order to adapt them to the economic context by improving the legislation and
regulations such as the Investment Code, the Mining Code, the Professional Code, and the
Labour Code, etc.

The Government has taken action to
promote the energy, tourism, transport and crafts sectors.

It aims to increase the
effectiveness of the banking system so as to improve financial intermediation.

The Government has also taken
liberal tariff measures to boost trade. Foreign trade procedures have been simplified
through a system of automatic recording of export and import operations.

Trade policy is adopted following
consultation between the Government and the private sector.

Mali has also signed bilateral,
regional and multilateral trade agreements.

Bilateral trade is
non-discriminatory, but there is preferential trade within the framework of the West
African Economic and Monetary Union (WAEMU) and the Economic Community of West African
States (ECOWAS).

Mali has signed the Lomé Convention
and is a founder Member of the WTO.

The trade policy measures applied by
Mali are mainly customs tariffs, the only means of protecting production. There is also
preshipment inspection with the aim of guaranteeing fiscal revenue and establishing fair
competition among economic operators.

Mali also faces problems on the
domestic market because of inadequate supplies and in foreign markets due to quantitative
restrictions, standards or other regulations applied by some of its trade partners.

The Government intends to
consolidate the liberalization of the economy by adapting the legislative and regulatory
texts and promotion structures to the subregional and international economic context, with
the support of the international community. Back to top